 In your notebook: › Draw › List › Write › Everything you know about credit and credit cards. › When the time sounds, share your list with your partner. We will discuss as a class.

 I will be able to discuss the responsibilities associated with having a credit card by listing three advantages and two disadvantages of owning a credit card.

 Credit is the ability to obtain goods and services without actually having to pay for them.  Your credit score is a number financial institutions use to determine how risky it is to lend you money.

A Credit card allows you to obtain goods and services by borrowing money from the credit card company (up to a specific limit ) by using your credit card. All money borrowed must be repaid in full and on time or the consumer must pay the credit card company additional money.

Advantage or disadvantage? A loan that charges interest if not paid in full. Encourages or enables impulse purchases. Consumer protection from fraud. Quick source of funds in an emergency. Responsible use of cards increases credit score. No extra fee if credit card balance is paid in full each month. An additional fee is charged if payment is late. Misuse of credit cards lowers credit score. Ability to obtain needed items Some credit cards allow you to earn rewards (depending on usage)

Disadvantage A loan that will charge interest if not paid in full. Advantage Responsible use of cards increases credit score. Advantage Consumer protection from fraud. Advantage Quick source of funds in an emergency. Disadvantage Encourages or enables impulse purchases. Advantage No extra fee if credit card balance is paid in full each month. Disadvantage An additional fee is charged if payment is late. Disadvantage Misuse of credit cards lowers credit score. Advantage Ability to obtain needed items Advantage Earn rewards

 What are three benefits that come with having a credit card?  What are two potential problems credit cards can cause?  What is one thing that surprised you about credit cards?